DP World issues $100 million blue bonds

DP World, as a major contributor to the sustainable blue economy, issued blue bonds worth US$100 million to finance sustainable projects including maritime transport, port infrastructure, and dealing with marine pollution, in addition to positive initiatives in the field of environmental and water protection.

Through this issuance, DB World expects to contribute to bridging the large financing gap for United Nations Goal No. 14, “Life Below Water,” and United Nations Goal No. 6, “Clean Water and Sanitation,” and to increase transparency of disclosure in a pioneering response to investors’ growing interest in blue assets.

The new issuance is the first of its kind in the blue bond category from a company from the Middle East, which reflects DP World Group’s goal of leading the logistics sector and the region towards a more resilient future.

These bonds follow the recent publication of the Group’s Sustainable Finance Framework, which adheres to various international standards, and takes into account the IFC’s Blue Finance Guidelines and the “Sustainable Blue Economy Finance Bonds – Practitioner’s Guide.”

DP World’s first 5-year blue bond was priced at a differential of 99.6 basis points over US Treasury bonds, with a yield of 5.25%. This represents DP World’s lowest spreads ever in the bond or sukuk market, which confirms the attractiveness of this issue.

This release is consistent with the Oceans Strategy, the long-term decarbonisation and water strategies recently launched by DP World.

The Oceans Strategy includes four basic pillars, links global trade and concern for the environment, supports the group’s leadership and direction towards a sustainable blue economy, in addition to removing barriers to comprehensive climate action for the oceans, and aims to strengthen the Paris Climate Agreement and the goals of the Kunming-Montreal Global Biodiversity Framework.

Sustainable business practices

Sultan Ahmed bin Sulayem, Chairman of the Board of Directors and CEO of DP World Group, stressed that this step lays a strong foundation for the coming years, noting that they are increasingly working in areas where the oceans are exposed to pollution, where biodiversity on the coasts is lost, and vital resources such as water become more abundant. Rarity, which poses a major threat to nature and humans.

He explained that this issuance is the second initiative of the DP World Group in sustainable financing markets, which highlights the commitment to sustainability and the approach towards sustainable business practices.

The Chairman, CEO and President of T.G. Group said: Rowe Price, Rob Sharps, said that this innovative deal will use capital to achieve Goal 14 of the United Nations Sustainable Development Goals, “Life Under Water,” while providing an opportunity to achieve attractive investment returns, pointing out that Goal 14 is the most in need of financing among… All sustainable development goals.

Philip Brown, Managing Director and Global Head of Sustainable Capital Markets for Citi Group, said: “Citi is supporting DP World in arranging this important inaugural blue bond issuance within the updated and pioneering sustainable financing framework. The eligible projects included in the blue bond portfolio include sustainable maritime transport by supporting… Research, development and purchase of alternative fuels and technologies to reduce carbon emissions and other sources of marine pollution in the maritime sector, and sustainable development of ports, by financing infrastructure development operations to reduce environmental impacts, noise and air pollution, and preserving and restoring the marine ecosystem through expanding existing solution projects. On nature to preserve and restore marine ecosystems, innovations to enhance biodiversity, and marine pollution through initiatives to address waste and pollution in coastal and marine environments, in addition to improving water quality and ensuring equitable access to water resources.

Earlier this year, DP World published its inaugural Green Sukuk Impact and Allocation report, the Transparency and Accountability in Sustainability Report.

Of the $1.5 billion raised in 2023, $1.17 billion was allocated to eligible green projects, and the projects financed through the Sukuk contributed to avoiding more than 177 million kilograms of carbon dioxide emissions, saving 466,057 megajoules of energy, and generating 866,686 kilograms of carbon dioxide emissions. Watts per hour of renewable energy.